Unknown problem no. 5 In the table below, information about the market index, asset X and the risk-free asset on a given normal market are stated. The risk-free rate next year is 1%. DKK Asset Market price (DKK) today (t=0) 500 ? 247.52 Market index Asset X Risk-free asset Cash flow year 1 Boom (P = 60%) 800 550 250 Recession (P = 40%) 300 50 250 In which interval is the return of asset X (stated as decimal number) during the recession? (Hint: Start by determining the price of asset X) A. *B. C. D. [0.75; 0.85] 1-0.85; -0.75] 11.10; 1.20] 1-0.70; -0.60] [0.50; 0.60] [-1.10; -1.00] E. F. Unknown problem no. 6 In the table below, information about the market index, asset X and the risk-free asset on a given normal market are stated. The risk-free rate for the next year is 0.25%. DKK Asset Market price (DKK) today (t=0) 500 ? ? Market index Asset X Risk-free asset Cash flow year 1 Boom (P = 45%) 800 550 250 Recession (P = 55%) 300 50 250 In which interval is given the return of asset X (stated in percent) during the boom? (Hint: Star by determining the price of risk-free asset and then next determine the price of asset X) A. B. C. *D. E. F. [8; 10) ]-70; -60] 180; 100] ]115; 122] (-90; -75] [60; 80[ In the table below, information about the market index, asse: X and the risk-free asset on a gven normal market are stated. The risk-free rate next year is 1% DKK Asset Market Index Asset X Risk-free asset Market price (DKK) today ito) 500 252.48 247,52 Recession IP = 50% 40p 150 250 Cash flow year 1 Boom (P = 50) 700 450 250 In which interval is given the risk premium of asset X (stated in percent? (Hint: Start by determining the return of asset X in each statel A (17, 18) B. 118:19] C. 20:32) D. 112, 14] E. (21,23 F. 128, 29) In the table below, information about the market index, sex and the risk free asset on a given normal market are stated. The risk-free rate next year is 1% DKK Asset Market price (DK) today (10) 500 ? 247.52 Market Index Asset X Risk-free asset Cash flow year 1 Boom (P-60% 800 550 250 Recession (P-40% 300 50 250 In which interval is the return of asset X (stated as decimal number) during the recession? (Hint: Start by determining the price of asset XI A. "R 10.75;0.85) 1-0.85:-0.751 1110: 1.200 -0.70; -0.60) [0.50;0.60) (-1.10;-100) D. E. F. Unknown problem no. 6 6 In the table below, information about the market index, asset X and the risk-free asset on a given rormal market are stated. The risk-free rate for the next year is 0.25% DKK Cash flow year 1 Asset Market price (OKK) Recession Boom today (1-0) (P-55% (P-45% Market Index 500 300 800 Asset X ? 980 250 Risk-free asset ? 250 250 In which interval is given the return of asset X (stated in percent during the boom? (Hint: Star by determining the price of risk free asset and then next determine the price of asset X) 3-70-609 c. 180: 100 1115: 1221 E. (90- 75) 16. (60; 800